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The article discusses the major spending taxes, on tourism industry, interest rates and foreign investments, to address the growing balance-of-payments deficit in the U.S. The author noted that the deficit was the result of the U.S. initiative to let its citizens spend, lend and invest money anywhere in the world. The proposed cuts would yield annual savings of 100 million dollars for tourism and one billion dollars for interest rates, but would have difficulty in foreign investments.

The article focuses on U.S. mutual funds as of April 15, 1973 with special attention paid to the tax imposed on investments in foreign equities called interest equalization tax (IET). The author discusses closed-end trust American-South African Investment Co., Japanese equity mutual fund Japan Fund, and open-end investment firm Legal List Investments Inc. Special attention is paid to Legal List's chairman Douglas B. Fletcher.

The article reports on the proposed interest equalization tax in the U.S. which will be payable by U.S. taxpayers who purchase foreign securities and obligations owned by foreigners. It mentions that the effective date of its implementation will be on July 19, 1963 and will be based on the actual value of the acquisition. It affirms that the tax proposal is expected to raise borrowing costs.

The article talks about tax-related issues. As a general rule, if property is transferred by gift, credit claimed by the donor with regard to such property will be subject to recapture, depending on the length of the donor's holding period. Taxpayers may choose between the per country or the overall limitation on foreign tax credit under Code Section 904. It also tackles installment reporting by dealer and optional payment terms. The use of escrow shares in corporate reorganizations is also discussed. It also considers the topic on tax liability of subsidiary withdrawing from group.